Strategy Inc. Overhauls mNAV Metric Amid Share Price Plunge

Strategy Inc., a company that has struggled in recent months, is overhauling its key financial metric, mNAV. The move comes at a critical time, as Strategy's shares have plummeted by 39.45% since January, faster than the decline of Bitcoin.

The change will introduce a fixed efficiency threshold of 1.0x and raise the mNAV metric to 1.07x, creating what CEO Phong Le calls 'the simplest and most transparent trigger possible' for restarting equity issuance.

This reform aims to restore investor confidence amidst intense market pressure. The company's shares have been hit hard, falling in tandem with its debt instruments since January.

The updated mNAV will account for all securities senior to MSTR, distinguish between ITM and OTM converts, and establish a 1.0x threshold for accretive MSTR issuance. This should reassure investors that any future share issuance will guarantee an increase in Bitcoin per share, or BPS.